Raymond James Comments On CA Tech (CA) Going Private, "Makes Sense"

Raymond James maintains Market Perform on CA Technologies (NASDAQ: CA).

Following a report that CA Tech and Bmc Software, Inc. (NASDAQ: BMC) are considering a possible deal that would see CA going private through a purchase by BMC.

Raymond James analyst Dr. Mike Turits believes that such a deal would make sense "given the multi-year struggle to show organic growth."

He comments "The combination could also create value by consolidating certain markets, especially mainframe IT operations management, and creating a complimentary combination in others, including ITSM, security, and “devops.” While CA has modernized its product offerings in many subsegments over the last few years, we see a CA + BMC combination as combining two legacy players, making the more likely strategy one of “cash cow” rather than pursuing growth."

Furthermore he believes a deal could add value through consolidation of a fragmented IT market and combining numerous bits of complimentary pieces.

For an analyst ratings summary and ratings history on CA click here. For more ratings news on CA click here.

Shares of CA closed at $31.58 yesterday.

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